"Battery limits" in general simply outlines the limits of the
work to be done by the engineer. If a refinery asks an engineer to
carry out some work on the refinery, the battery limits need to be
defined in order to determine what the engineer is responsible for
and what he is not responsible for.
In the case of a refinery, for example, the battery limits might
include sizing and costing a new heat exchanger. It could include
the cost of utilities, installation, electrical needs, maintenance.
Outside the battery limits might be how the utilities are supplied,
how this heat exchanger is going to be delivered, who is going to
build the exchanger etc.